Acer, Asustek up on China stimulus inclusion
TAIPEI May 26 (Reuters) - Shares of Taiwan's top PC brands Acer (2353.TW) and Asustek (2357.TW) climbed on Tuesday after the companies were included in a Chinese stimulus package that allows them to sell computers in China.
Acer and Asustek are among seven Taiwanese companies included in a package meant to encourage more spending on electronics, China's Ministry of Commerce said in a statement on its website on Monday.
Shares of Acer and Asustek were up 2.09 percent and 1.33 percent, respectively, at 0335 GMT, outpacing the benchmark TAIEX .TWII index's 0.24 percent climb.
Acer and Asustek previously faced considerable headwinds competing in the massive Chinese market, which is dominated by home-grown brands such as Lenovo (0992.HK) and Founder (600601.SS).
Analysts were sceptical about how beneficial inclusion in the list would be.
"They'll still have to deal with local governments and local brands, which would probably have much better connections to get themselves into stores," said Vincent Chen, an analyst at Yuanta Securities.
Acer, the world's third-largest PC brand, and crosstown rival Asustek dominate the low-cost netbook PC segment, which has seen considerable success amid the global downturn as consumers turn to cheaper products.
(Reporting by Kelvin Soh; Editing by Jonathan Hopfner)
((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.com))
((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: PC/HOTSTOCK
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